Cases - Lockland Builders Ltd v John Kim Rickwood

Record details

Name

Lockland Builders Ltd v John Kim Rickwood

Date

(1995)

Citation

77 BLR 42

Keywords

Contract - termination - scope of termination notices - contract providing procedure where developer could terminate the contract in particular circumstances - common law rights of termination - whether the contractor was precluded from exercising his common law rights of termination in all circumstances - where the contract provided a termination procedure in particular circumstances, whether the contractor was precluded from terminating the contract otherwise than by exercise of the contractual procedure

Summary

Clause 2 of the contract between developer and contractor provided a procedure by which the developer could terminate the contract should he be dissatisfied with the rate of progress, or the quality of materials or workmanship. The clause was not expressed to be 'without prejudice to any other rights or remedies' or similar. It was held that clause 2 impliedly precluded the developer from terminating the contract otherwise than by the exercise of his rights under clause 2, since the complaints made fell squarely within the scope of clause 2, i.e. complaints as to the quality of materials and workmanship. However, it was considered that clause 2 would not have done so in relation to breaches outside the ambit of clause 2, e.g. by the contractor walking off the site when the works were still substantially incomplete.